Correlation Between Associated Capital and Binah Capital
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Binah Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Associated Capital and Binah Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Binah Capital Group,, you can compare the effects of market volatilities on Associated Capital and Binah Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Associated Capital with a short position of Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Binah Capital.
Diversification Opportunities for Associated Capital and Binah Capital
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Associated and Binah is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, and Associated Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Associated Capital Group are associated (or correlated) with Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of Associated Capital i.e., Associated Capital and Binah Capital go up and down completely randomly.
Pair Corralation between Associated Capital and Binah Capital
Allowing for the 90-day total investment horizon Associated Capital Group is expected to generate 0.18 times more return on investment than Binah Capital. However, Associated Capital Group is 5.69 times less risky than Binah Capital. It trades about -0.02 of its potential returns per unit of risk. Binah Capital Group, is currently generating about -0.03 per unit of risk. If you would invest 3,629 in Associated Capital Group on September 12, 2024 and sell it today you would lose (31.00) from holding Associated Capital Group or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Binah Capital Group,
Performance |
| Timeline |
| Associated Capital |
| Binah Capital Group, |
Associated Capital and Binah Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Binah Capital
The main advantage of trading using opposite Associated Capital and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Binah Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Binah Capital will offset losses from the drop in Binah Capital's long position.| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
| Binah Capital vs. Primo Brands | Binah Capital vs. Alvarium Tiedemann Holdings | Binah Capital vs. Diamond Estates Wines | Binah Capital vs. Western Acquisition Ventures |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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